Norway's $2.3 tln sovereign wealth fund posted a 0.5% loss in Q3, driven by a
3.5% decline in fixed-income holdings that outweighed a 0.5% equity gain, Norges
Bank Investment Management said on Thursday. Deputy CEO Grande said returns were
near flat and ended slightly negative as rising interest rates hit bond
performance. It is the fund's second quarterly loss in three quarters. Under
current rules, 70% of the fund's bond allocations must be in sovereign debt;
NBIM has recommended cutting government-bond holdings, including U.S.
Treasures, to 50% and increasing exposure to higher-yielding debt to lift
returns. The proposal is expected to be submitted to parliament in H1 next year
as part of the annual white paper.
